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Wednesday, 27 April 2016

Maruti Suzuki eyes Africa Investment after Quarterly Profit Fall

India's biggest carmaker Maruti Suzuki India is conducting a feasibility study for a new assembly plant in Africa, a top executive said after the company posted its first fall in quarterly net profit in two years.

A push into Africa, where there is high demand for small, inexpensive cars, makes sense for the likes of Maruti Suzuki, analysts have said. Establishment of it own plant in the region could also help it to contend with stricter rules on local sourcing, which have weighed on its exports to the region.

Maruti is evaluating the suitability of different African markets for an assembly plant, managing director Kenichi Ayukawa told reporters on Tuesday, adding that the study is in its early stages.

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